European Programmatic Market webinar

Transcription

1 European Programmatic Market webinar Monday 23rd November Good afternoon and welcome to the Webinar, we will start shortly

2 Today s agenda and presenters Introduction European Programmatic market size and key trends Eleni Marouli, Senior Analyst, IHS UK programmatic market David Frew, Senior Programmes Manager, IAB UK Polish programmatic market Artur Banach, CEO, Netsprint and member of IAB Poland Programmatic working group Italian programmatic market Michele Marzan, CEO, Teads Italy and Vice President, IAB Italy Panel discussion: Sally Silver, Chief Digital Officer, Amplifi (Dentsu Aegis Network) Simon Halstead, Head of Demand Development International, AOL Michael Greene, General Manager Supply Chain, AudienceScience

3 European Programmatic market size and key trends

4 A 3bn programmatic market for desktop banner display 3,500 Europe: Programmatic Desktop Display NAR* ( m) 3, % 2,900 2,500 2,000 1,841 1,500 1, Source: IAB Europe and IHS NAR = net advertising revenue; display data excl. mobile and video

5 Mobile programmatic explodes Progammatic Mobile Display NAR ( m) % Source: IAB Europe and IHS NAR = net advertising revenue; display data excl. desktop and excl. video

6 Programmatic video market more than doubles Progammatic Video NAR ( m)* % Source: IAB Europe and IHS NAR = net advertising revenue; desktop and mobile video

7 Within 3.65bn programmatic total, desktop display dominates 4,000 3,500 3,000 2,500 2,000 1,500 1, Total: 2145m Programmatic formats in context ( m) +70.5% Total: 3657m Video Mobile Display Desktop Display 0 Source: IAB Europe and IHS

8 All formats now generate double-digit share of total revenue programmatically 45% 40% Share of format revenue that is generated programmatically 39.3% 35% 30% 25% 20% 25.7% 17.5% 27.3% % 12.1% 10% 5% 6.1% 0% Desktop Display Mobile Display Video Source: IAB Europe and IHS

9 Western Europe has lion s share, but Central & Eastern Europe surges 4,000 Total programmatic NAR: regional trends 3,500 3,000 2,500 2,000 1,500 Central & Eastern Europe Western Europe 1, Source: IAB Europe and IHS

10 UK programmatic market David Frew, Senior Programmes Manager, IAB UK

11 A wide range of industry participants contributed to the research 31 survey respondent s 13 intermediar y interviews 14 media agency and expert interviews SOURCE: IAB Media Owner Sales Techniques 2014

12 Our focus is on how media owners sell inventory we have retained last year s framework Direct Channel Indirect Direct sales Inventory bought at fixed prices directly from media owners through inhouse or external sales teams, using insertion orders and manual processes to book and run the campaign Networks Inventory bought at fixed prices from a third-party offering packages which aggregate supply across multiple media owners Programmatic direct (e.g. private marketplaces) Inventory bought from a particular media owner using automated processes, where a direct relationship exists between the buyer and media owner in the form of pre-existing deal terms (e.g. exclusive access and price floors) Programmatic indirect (e.g. open RTB exchanges) Inventory bought on an impression-byimpression basis in real-time through an open, unreserved auction Following feedback from media agencies, we have made minor refinements to our classificatio n, which affects comparabilit y with 2013 data Traditional Technique Programmatic SOURCE: IAB Media Owner Sales Techniques 2014

13 Programmatic trading grew rapidly in 2014, accounting for 45% of total UK online display advertising Online video 0.28bn Mobile display and video Mobile display and 0.47bn video 0.86bn* 45% programmatic Desktop display 1.14bn Desktop display 1.0bn* * - Display affiliate advertising is excluded from the totals SOURCE: IAB Media Owner Sales Techniques 2014

14 Overall, direct sales still account for 49% of the market programmatic direct has grown strongly to 24% Online video 0.28bn Mobile display and video Mobile display and 0.47bn video 0.86bn Direct sales Programmatic direct (e.g. private marketplaces) -2% +9% 49% 24% Desktop display 1.14bn Desktop display 1.0bn Networks -15% Programmatic indirect (e.g. open RTB exchanges) 6% 21% +8% +2% = percentage point change SOURCE: IAB Media Owner Sales Techniques 2014

15 Programmatic is expected to grow rapidly, accounting for 70-80% of display ad spend in % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Ceiling 80- on growth? Mobile 90% 70- Vide Formats sold only 80% o direct Desktop 60- (e.g. sponsorship) 70% account Total for 70-5% of display ad display spend 80% Some high end premium publishers prefer a direct sales model SOURCE: IAB Media Owner Sales Techniques 2014

16 Polish programmatic market Artur Banach, CEO, Netsprint and member of IAB Poland Programmatic working group

17 90% of respondents invest in programmatic What portion of your display expenditures goes to programmatic? % 61-80% 41-60% 21-40% 1-20% 0% 0% 10% 20% 30% 40% 50% 60% Base: Polish respondents: 92 Source: IAB Europe_Attitudes towards Programmatic Advertising

18 3-digit growth of programmatic display 14.0% 12.0% 10.0% 8.0% Poland: Share of programmatic display 6.9% 13.1% 6.0% 4.0% 3.5% 2.0% 0.0% Source: Estimates of Polish IAB Programmatic group

19 Mobile is growing fast % 18% 88% 82% Mobile Desktop Mobile Desktop Source: Estimates of Polish IAB Programmatic group and Adform DSP

20 Italian programmatic market Michele Marzan, CEO, Teads Italy and Vice President, IAB Italy

21 Programmatic Advertising in Italy: the 5th driver for market growth since 2014 Internet Advertising Investments in Italy 2014 vs 2013: 5 drivers of growth Search Video Mobile Social Programmatic 665 m + 14% 300 m + 25% 290 m + 50% 170 m + 70% 110 m + 120% Must have Multi screen, millennial generation Source: IAB Italia & Osservatorio Internet Media Politecnico di Milano Audience shifting Social behaviour, time spent Tech driven change Performance first Efficiency for branding

22 Programmatic in Italy: a breakthrough development in 13/ 14 Total Internet Advertising Market size in 2014: 2bn Share of Internet Adv on Total Adv 25% 150 Mln % 110 m 60 >+1000% 50 m 30 0 Not existing <5 m <1% out of Display Advertising 5% out of Display Advertising 10% out of Display Advertising Source: IAB Italia & Osservatorio Internet Media Politecnico di Milano Display = Banner + Video + Social

23 Programmatic in Italy: Open Market & Performance at the origin 2014 Internet Adv. market size 2 bn ( 25% on total adv spending) Display (banner, video, social; web & mobile) 56% Other 44% Programmatic 10% (110 m ) Non programmatic 90% Private market 15-25% Open market 85-75% Source: IAB Italia & Osservatorio Internet Media Politecnico di Milano

24 Programmatic in Italy: what s going on in 2015? 220 m % Mln m % m 30 Not existing <5 m * Source: IAB Italia & Osservatorio Internet Media Politecnico di Milano *market research as of Nov. 2015, investments until Oct EoY estimation 10% out of Display Advertising 18% out of Display Advertising Display = Banner + Video + Social

25 Programmatic in Italy actual picture HIGHLIGHTS Programmatic Adv doubling for the last 3 years; its weight on the total display adv has become relevant Programmatic VIDEO is nowadays growing more than banner; Video is expected to considerably grow in 2016, cacthing budget from TV spending Since 2015, programmatic has been adopted to reach goals also for branding Demand side is now offering premium inventory, going beyond unsold and low cost adspaces Big and small agencies are all active on progr., allthough there s a lack of human resources Data driven adv started to be adopted by top advertisers, also leveraging internal DMPs LOWLIGHTS, space for improving Still lack of transparency by some trading desks (value chain, adspaces) Data driven adv has not been applied as a major added value on top of media trading tecniques Viewability brings concern towards programmatic, despite the fact major publishers made significant steps to improve quality of their spaces Viewability measurement needs stronger standards and a more distributed usage of measurement tools Tecnological transformation coming from programmatic solutions sometimes clashes in front of language and cultural barriers, typically less strong among young generations

26 Panel discussion Eleni Marouli, Senior Analyst, IHS David Frew, Senior Programmes Manager, IAB UK Artur Banach, CEO, Netsprint and member of IAB Poland Programmatic working group Michele Marzan, CEO, Teads Italy and Vice President, IAB Italy Sally Silver, Chief Digital Officer, Amplifi (Dentsu Aegis Network) Simon Halstead, Head of Demand Development International, AOL Michael Greene, General Manager Supply Chain, Audience Science

27 Q&A Please address any further questions and comments to Alison Fennah

28 Thank you for attending Next steps: Watch the webinar recording contact Marie-Clare for the link Download the European Programmatic Market sizing report, Road to Programmatic White Paper and Attitudes towards Programmatic Advertising report from the IAB Europe website Survey at the end of this Webinar please provide your feedback

29 Contact Alison Fennah, IAB Europe Marie-Clare Puffett, IAB Europe Connect with IAB Europe